The UK Infrastructure Bank (UKIB) has made a major investment in subsea high voltage direct current (HVDC) cable manufacturer XLCC, committing £20 million for the development of a new factory in Hunterston, Scotland. The deal includes an option to invest an additional £67 million, contingent on XLCC achieving key development milestones.
This investment is a key part of the UK government's Clean Energy Mission, aimed at establishing the country as a global leader in clean energy and advancing progress toward net zero emissions. UKIB's funding will support the construction of XLCC's factory, which, once completed, will have the capacity to produce thousands of kilometers of HVDC cable annually. The facility is expected to create 900 permanent jobs, including over 200 apprenticeships, significantly contributing to the country's renewable energy supply chain.
John Flint, CEO of UKIB, highlighted that the growing demand for subsea cables will soon outstrip current supply chain capacity. He added, “Our support for XLCC is intended to provide confidence to the market, crowding private investment into this sector to boost production capacity in an industry set to have a significant impact on the UK's transition to net zero.”
Ian Douglas, CEO of XLCC, praised the investment, stating, “The creation of the Hunterston facility in Scotland brings significant investment to the UK, creating highly skilled jobs in advanced manufacturing and project management for decades to come.”
The project has also received support from Scottish Renewables, with Offshore Director Colin Palmer noting that this investment is crucial for strengthening Scotland's renewable energy manufacturing capabilities, especially for offshore wind and electricity networks critical to energy security.
The Hunterston factory is expected to play a pivotal role in expanding the UK's capacity to meet growing demand for renewable energy infrastructure while supporting the local economy with long-term, skilled employment opportunities.
